>> good morning. coming to you live from hong kong, this is "on the move." sentencing do today after a trial over high level corruption in hong kong. also, asian markets towards a third straight advance and we are expecting the reach of north korea -- what has changed since the sony hack? we will watch shares in hong kong's biggest property developers.

sun hung kai suspended on friday as the corruption trial came to an end involving two billionaire brothers, i hong kong's former number two official. walk me through what happened. >> there is a sentencing hearing scheduled for today so we would hear how long these men will be facing depending on what the judge decides. we are talking about hong kong's former number 2 -- rafael hui. the second-highest position in hong kong's government. also, the billionaire businessman raymond kwok and thomas kwok. sacrede looks at whether payments and rent-free -- whether secret payments and rent-free properties were given. thomas kwok was found guilty of conspiring to can -- commit publicing in

office. it was that one charge related to a series of payments amounting to $1.1 million. it is a drop in the ocean compared to what they are paying their lawyers. >> this money was actually basically to keep hui this post to sun hung kai. it is the most valuable property company. it is quite a big and powerful company. rafael hui was found guilty of five charges. each of these charges carries a penalty of up to seven years. these men can be looking at time. >> what about the company? how has that been affected by the case which has been in the headlines? >> trading was suspended on friday as the verdict was announced. it will resume trading today.

immediately after the men were 2012,ed, this was back in the shares fell by 13%. that was the day after the arrest. in terms of the company itself, thomas kwok along with his brother raymond stepped down as chairman of the company. he also stepped down with other positions like managing director. they are keeping it in the family. sun hung kai was founded by raymond and thomas kwok's father. thomas kwok's son will be assigned as executive director. >> there is also walter kwok. >> the oldest brother staying outside the company business right now. had several investigations. the company said regardless of the positions and backgrounds of the chairman involved, the law

enforcement was according to the law. revealed -- it stands ready to provide corruption prevention and education. the icac seeing this as the biggest high-profile case in hong kong. >> we will be watching those shares when they get underway. overall, it has been another good day when it comes to equity trading. let's take a look. >> asia is reacting to what is happening on wall street as u.s. stocks surge the most last week since october. it wasn't just the u.s. stocks. it was equities around the world after the fact it would be patient when it comes to raising the interest rates. let's take a look at asia.

asia reacting to what is happening on wall street. japanese stocks were rising earlier in the day. now, it is fractionally down but stocks have been rising for two days now. it will be the third consecutive day today if it rises within energy companies which is leading the gains after the crude prices rose and the yen weakened against the dollar. later, we do have more economic data out of japan as they released the monthly economic report in the afternoon. we will get economic data in south korea. it is not trading .1% higher. we have the finest ministry with the 2015 economic policy direction. they are expecting to cut the growth target rate which currently stands at 4%. australia is doing well.

they are rising 1%. 1.2%. that is being led by energy shares. we can see the oil prices have been fluctuating greatly. we have seen after it rose -- its biggest rise in more than two years. this saudi arabia finance minister said it is confident that prices will rebound. let's take a look at what is happening with the japanese stocks. it is all about oil movement. that asreports saying much as ¥500 billion to buy it. it is risen the most since 1974. art thathave familym cut its growth forecast because they are saying the expansion will be slow because of the sales tax hike they had back in

april. we have a nissan saying they will rise rate prices in russia and stopped taking orders for models there. back to you. >> let's take a look at sony under pressure from hollywood for canceling the movie the interview at the face of the hack attack. the trigger for the intrusion which washington is pointing the finger at north korea. we will look at how the film can be released and what options sony has. >> that is after the cinemas said they would not release it. now sony is looking at streaming on-demand. they have to find a distribution partner which is so far there are no offers on the table. youtube, netflix, amazon has declined to offer so far. the ceo of sony said they have not given into the hackers despite the fact that they canceled the christmas release

of the film. -- it does have a streaming video service called crackele that could be a possibe option. the rabbit reports they could release it for free and reduced -- and distribute the film that way. >> it is costing a fortune so far. we have seen in north korea come out and say any u.s. punishment over this will lead to damage thousands of times greater. this is coming despite them saying it was in them. >> altra harsh action is what they are threatening after the u.s. pointed the finger at north korea on friday. >> barack obama has gone into the mix. >> he called sony's decision a mistake. he spoke to cnn over the weekend and said he wished sony approached him before they made the decision to pull the movie. he said he probably would not have done -- told them to do that.

>> i don't think it was an act of war. i think it was an act of cyber vandalism that was very expensive. we take it very seriously. we will respond. , not socyber vandalism much active or from president obama. there was reaction from senator john mccain who said this is a new form of cyber war and we need to react vigorously. >> it keeps on developing. thank you very much. north korea is denying any involvement anin the hack. pyongyang's alleged link of attackers goes far beyond its borders. joining us is sam kim. what do we know about the north korean hacking ability? far frome know so

south korean officials is that north korea operates one to one which has about 3000 hackers. these hackers are not necessarily very advanced in their capabilities but they have enough skills to hack e-mails, steel important information from companies as we have seen in the hacking. their programs can be hidden of the months in other people's e-mails until the hackers ordered these e-mails to pass the networks they are very dan -- buried in. >> why have they developed a hacking team? is it because it is cheap? or a big impact? >> you are right. it is very cost effective. it is not cost a lot of money to put together a team of hackers,

especially of these are kids just out of schools that are training them in technology. north korea knows better than anyone that modern warfare is basically electronic warfare. it involved a lot of electronic devices so north korea really does not have the money and resources to put together these weapons that are as modern as those weapons operated by the u.s. or south korea. what it does is raises a team of hackers who are able to penetrate into foreign enemy networks and disrupt and paralyze the networks that are used to operate these modern weapons. it is very cost effective in terms of the money they have to spend. also, rather than building weapons, they can build a very effective defense weapons which helps them increase the odds of surviving in the war, in any war

that breaks out. very poor country. how can it build up such a cyber unit? >> it is true. it is a very impoverished company -- country. you have to understand this is also a dictatorship. in a country like north korea, what the leader wants is basically done by the people surrounding him. the economyf what is. what the dictator wants, the most resources. if he wants a cyber hacking unit and he thinks that would be useful in a war, people around him will basically handpick the smartest and the most loyal kids from schools. then, these kids are put into some of the better departments

in punyongyang. >> thank you so much for that. sam kim joining us with a look at north korea's hacking ability. an irresponsible increase -- lashing out at the oil producers, next. we are back in a couple of minutes. ♪

nonmembers for the cut in oil. the united air emirates says other country should stop there a responsible increase. crude heading for one of its largest today jumps in five years. taking a look at west texas up by two thirds of 1%. also, brent crude trading. what are the opportunities in oil? i am joined by a hedge

fund manager. they have energy shares and he is in singapore. thank you for joining us. what do you think of these comments coming from saudi arabia and the united arab emirates? >> i find it quite sensitive because it is quite bizarre in any other industry to expect low-cost producers to drop supply while high-cost producers continue. ee know that opec are th low-cost producers of oil. we expect them to continue. this is the more rational decision. we expect u.s. jail producers to drop off over the next couple of quarters. there are two types of cost -- moderate or short-term. the short-term people can stretch it for another three months or six months. you will see as the hedges run out, a lot of oil producers have

oil to hedge production over the next year. as these hedges run out, we will see them run out of supply beginning with u.s. shale surprises -- suppliers. a lot of the u.s. suppliers have high rates. it drops by 50% per year. oil drops another 15% per year. there is another difference in the nature of the suppliers. 1/5 of theut producers of oil companies and production companies. there is exploration companies and production companies. we don't expected to drop dramatically. production is expected to continue. we will see the high-cost producers drop out. >> does that mean this reason rally we have seen of the bottom of the oil for the time being?

it is theard to say bottom right now. we would expect the readjustment over the next couple of quarters. the data does not have too much long-term meaning in my view. we would expect the ruble depreciation be linked because it is a major exporting country. they are maintaining the oil experts but the ruble will depreciate. we see a strong linkage with that. russia is key to the oil puzzle just as much as saudi arabia and the u.s. shale companies are. that.sia has confronted you are investing in russia as well. you said how to pick stocks. you have to say very carefully. you have to be very carefully even if you want to drive there.

>> indeed. --have to look at companies a this locating -- a dislocated economy. we know the rates went from has% to 17% which means oil to be repriced down by 30%. this is par for the course. seeingrom this, we are panic from some foreign investors. russia has the risk of capital controls. a regime change could happen next year. we see all these scenarios. we are try to factor in these scenarios. we are looking at assets that will survive any scenario. there is a port. it lasts forever. you have trains. it is hard to replace tracks. we are looking at railcar operators, boats. we're looking at some companies with little or no debt that does

basics like produce a chicken or pork. reale not investing in estate companies or big consumer demand. we're looking for franchises that will sell items that are necessary. >> thank you for joining us. have a fantastic christmas. up, 1960's building in hong kong defied the wrecking ball. we will have a look at this rare project in a special report, next. ♪

>> breaking news. kai began trading with a gain of 2.4%. chairs was suspended on friday before the verdicts of the city's biggest ever corruption case. they were found guilty of bribing a government official. terror it down and start again -- that is what we typically see in asia. entrepreneur says there is another way. >> there was nothing really in the market that is comparable to

it because it is very well finished interior. theake a stroll along waterfront and you will notice one building sticks out from the rest. >> it is a labor of love. i am happy to see it all come together. >> the labor you can tell from these before pictures -- a 1962 lowrise in need of a good bit of work. most developers would've torn the building down and started over. victoria allan, the property veteran, loved the potential. >> i think soma developments go up in hong kong that have plenty of rooms and no place for storage. i wanted to do something that was totally different. >> she did the unthinkable 10 years ago. restore the building but expand the space like a new york city loft. >> this is the original space of

the building with its curved corner so we wanted to keep that. >> she kept the original name of the building which means let's get prosperous together. the conversion came with its share of hurdles. first, getting the approval from the buildings department and getting a bank to give her a loan which failed. she was able to complete the project thanks to private investors. >> i realized i could not get any financing from a bank. at that time, they would not lend on buildings. >> finally, how to install an elevator to the top floor. now linked to the private rooftop. >> this is the rooftop, the penthouse for the top floor apartment. it has a fantastic view. >> one unit per floor -- about 1300 square feet. $6,000 tos from $10,000 a month. kong's a bit of hong heritage maybe what makes it

home and unique. at this point, doing a conversion on something and not realizing where you are. this one has been modernized. >> going to be looking at another aspect of hong kong after the break. the city has enjoyed its best ipo run for years. we will look behind the headlines and a less flattering headline behind it. we will tell you what that is. we will have all of the opening numbers and a look at sun hung afteroperties up 2.4% trades were suspended on friday. ♪

markets forpacific third straight daily advance. shares returned from its sun hung kai.hon let's find out what is going on on the markets. we are looking at one of the company. ies.

>> asia markets trading like this -- waking up to a third on wall street as wall street starts the most since october. china has just opened trading up a 1.6%. is slightly down but it is been trading up earlier in the morning. the chinese securities regulatory commission has been reporting they will set up a special task force to crack down on stock manipulations. we will see how that affects trading for the rest of the day. bytralian out trading up led energy shares. oil has been fluctuating and that has been affecting australia mining stocks. let's look at what is happening with the stocks today. they were looking at casino stocks because over the day the president of china was in macau. hasanticorruption rally

wiped out $75 billion from casino stocks. they are taking the biggest beating and now trading down .16%. galaxy is down .23%. chairmankai today it's has resigned after he was convicted of conspiring to commit misconduct in public office. shares started trading today but they seem unharmed from that conviction. kwokurse, only one of the brothers was convicted. his younger brother raymond was cleared of all charges. raise $4s supposed to billion among the markets. the world's fourth-largest security firm also down. back to you. following the announcement that it is planning to raise a

massive a knot of money in hong kong. what are we looking at? billion was what they planned to raise. they will be selling shares at a discount. >> i thought they did that. >> it is a discount compared to notclose on friday but really compared to where it was before. the run up on the shares of these brokerages. it is now allowed them to raise of this much money. the stock becomes a currency at this point. what are they going to use $4 billion on? 6% of the proceeds will be used on other businesses. 10% will be going to replenishing working capital because they want to diversify

into other revenue streams. it has been margin trading that has been fueled margins in trading. >> we have seen these brokerage stocks in particular. >> the market cap, not by revenue. november, it was worth about as much as $21 billion. that is the red line market value. 55 -- it may about be a little lower -- about 55 billion u.s. dollars. 55probably went from 21 to in only six weeks. it should be there by christmas. where does it rank now?

ubs is third. goldman sachs is still number one. we have moreland -- morgan stanley. ubs is now third. jpmorgan andude these compare to us because it is more of a bank than a brokerage. it gets more of its revenue from commercial banking. c also has a commercial banking arm which is worth about $47 billion. you put that together, that is $100 billion. >> have a look at revenues. >> still way behind. goldman sachs and morgan stanley are more global companies. ubs between $8 billion. citic is about $4 billion. still some way to go. what is fueled of this search in valuations -- surge valuations are volumes which has been four times we've seen in china.

imagine the markets being interested. a lot of these people are using that to buy equities. it is close to one trillion. not necessarily good thing but it is pushing up the value not only of citic. all these other financial institutions. >> thank you very much. let's get you up to speed with some of those corporate headlines so far this morning. obama has described the sony hack as vandalism. washington has blamed north korea for the attack and the president is considering putting north korea back on its list of state sponsors of terrorism. north korea denies any involvement in the sony hack and has proposed a joint investigation. the final installment in the

hobbit trilogy was number one at the box office in north america raking in more than $56 million in ticket sales. it beat sony's remake of annie. the 1980 two movie was brought ford after copies were released online by hackers. sony executives do not believe sales were hit by the online release. at moreas been valued than $45 billion after a new investment round. the company is raised more than $1 billion in funding. the low cost online business model propelled it to the top five in china's smartphone market in the third quarter. it is number three worldwide behind samsung and apple. those are the latest corporate headlines. hong kong is having his best year for initial public offerings since 2010. look closely. let's bring in zed looking at this. if you look at it closely, there

is a dearth of foreign companies. >> absolutely. we just saw one non-chinese company listing here in hong kong. it is quite a departure from what we've seen in recent years. ada, lots of companies and consumer goods, retail as well as mining. seeking access to the chinese market. that was the story several years ago. the story today is the one company that was in hong kong was a malaysian funeral services company. ironic, isn't it? at $61alled nirvana asia million. companies are not raising as much money. it is not as attractive as other markets. the listing rules may not be favorable. look at alibaba that went to the newark exchange. >> the biggest ipo ever.

if they are not coming here, where are they going? is of the usual suspects? >> it certainly is. we take a look at two-year performance. the index is up just 2.2% over the last two years. compare that to the u.s. market at 44%. the european stocks at 21%. you follow the money, of course. you want to live in the place where the stock will perform better. this is all tied to the general downturn of the chinese economy. will it continue? some former exchange officials are perhaps more aggressive in recruiting foreign companies. the former chairman of hong kong exchanges has said this is critical. southern he focused on during his tenure at the exchange. asia'ss talk about billionaires because they have been outperforming the world this year. let's bring in tom in

singapore. give us an idea of the standout trends among the wealthiest in asia. >> the theme has to be the continued rise of china's billionaires. you take a step back and look at how the world's 200 richest people have performed. they gained about $40 billion this year. purely chinese billionaires, only 10 of them, they are up $50 billion alone. it is a real standout performance by chinese billionaires. within that is jack ma who is leaps and bounds ahead -- $26 billion alone and is now the world's 17th richest man. >> what else caught your eye? macau, thedown in continued clampdown on corruption by the chinese government. that is had a huge impact on the

macau operators. that have lost the $75 billion in market cap in the last few days. the owner oft woo, galaxy entertainment, he started the year 23rd richest man and is now down to 80. he lost about $6 billion. >> the question is is he actually the biggest loser? >> no. you have to look to japan for the biggest loser. that is son. softbank shares have slumped a bit. he is down about 35%. $6.7 billion. he is the biggest in asia. it is interesting because you look at the success softbank has had with alibaba. you look at the problems with the sprint-t-mobile deal. alibaba is an investment in the past and investors are looking

to the future. they are struggling to find any comparable investments and that is why softbank is down. and why he is down so much as well. >> thank you for that, tom. for more on the world's wealthiest, go to bloomberg.com/billionaires. chinese elite say the macau should change its game plan. we look at the visit to the territory. ♪

>> let's check in on some of the stories making headlines across the world. new york marking the deaths of two policemen. two members of the nypd shut in the patrol car -- shot in their

patrol car. the killer posted in online threat saying there was retaliation for the debts of two black men by police officers. a man is believed to be arrested. several people have been arrested in connection with a school massacre last week. seven suspected taliban militants stormed the establishment on tuesday. they killed children and teachers. by number of people have been attained for aiding the attack but no details have been released yet. taliban targeted the school in retaliation for the army's crackdown on militants across the border. china's leader has urged macau to desert -- diversify and not rely simply on gambling which get 80% of its revenues from casinos and is bracing for its first ever annual decline. this is as china's anticorruption drive cuts many many -- many vip gamblers.

we look at the anniversary of his return to china. >> we have to maintain the aim of a country of two systems. maintain the sovereignty, benefits of our nation and keep hong kong and macau prosperous and stable long-term. we must roll hong kong and macau accordingly to law and guarantee the success of one country and two systems by the law. right now.t more he runs a fund that specializes in chinese equities. he is also saying to diversify away from casinos. what candidate of -- diversify themselves to? oilush is very dependent on -- russia is very dependent on oil. in addition to casinos, i guess

they would develop more on tourism or the offshore financial center. that can be more suitable for macau. onef you do put your egg in basket, you get in trouble and this is what we see with casino stocks. do you think it is overdone? >> i think right now the casino stocks have bottomed. most of the potential negative factors had been factored in after xi jinping left macau after the 15th anniversary. the casino stocks will be a benefit. these extra tables that come on sometime this year? longer-term, when the port opens, they will get more familiar by the chinese. they will come to hong kong for investing. casino stocks, one of the

favorite stocks for the mainland chinese. in the longer term, the mainland macau ande going to go for investing in hong kong. >> let's talk about the a chair market. -- eight share market. it has been soaring. is there a point where you switch around? >> at this moment, that would be given they are dominated by the retail investors. -- retelling investors retail investors sentiment is very hot. >> and they say this will double the market in shanghai. >> it is different from hong

kong because they are dominated from the retail investors. they are not quite familiar with the shares. >> that is what connectors about? >> yes. the market will take some time to learn. when they get more familiar with the hong kong shares and the price, it will get more expensive. in the longer run, after three months there will be a lot of mainland chinese who will see into looking into investing in hong kong. >> what are the themes in 2015? >> we are expecting the chinese to reform the government. up in 2015e speeding . the government reform will bring a lot of investment opportunities. >> what he looking ahead of that

-- what are you looking ahead of that? >> allowing a lot of merging and acquisitions. thet of industries will let private companies to go into investing. the monopoly of some of the industries will be breaking up . we believe a lot of the privately owned enterprises will get benefits. your favorite theme are casino stocks. >> given the price has been cut by more than half, most of the negative factors have an pricing into the casino stock -- casino stocks, we are very good at the

program. we believe the program will bring a lot of mainland chinese investors. casino stocks, one of the unique stocks in hong kong. they will get popularity for chinese investors. >> thank you very much. up next, luxury watchmakers raising their game in the face of wearable tech. this is on the move. ♪

>> welcome back. having a look at what is going on in terms of the trading day. tokyo falling below the gain line. 70,605. were having stocks

their steepest three-day advance in nearly two months. 1.2% -- they up by australia market up by 1.2%. in doing somewhat of a lift off. we are seeing equities getting a bit of a boost. it has been a tough year overall for the luxury watch market. beijing's anticorruption drive and a slowdown in china and the occupy hong kong protest taking their toll and conspiring to cool down the market. the watchent of division says it is the start of a new era for luxury timepieces. angie lau spoke exclusively to him about the future of luxury watches and the rising digital challenge.

>> let's talk about hong kong. it is a city that is renowned throughout the world for its love of luxury watches, right? >> not only luxury watches. youhat is it about wearable want us to know about? >> this traditional watchmaking is not so avant garde. i would say it is both. this technology part of the history that will go away? watches are evolving. apple is coming out with one and now there is a shift. will you adapt? are you going to create your own smart watch? >> we are working on it. we are working with silicon valley. we have come back with the best people and we will most probably come out with a smart watch. >> how will asia factor into

this new drive? be theink asia will market where people, young people understand and where young people want these connected watches. >> thank you so much. a pleasure to talk with you. >> thank you. >> on all the financing in life, go to our website bloomberg.com/luxury. up -- stay instay touch with us on twitter. handle.my you can follow everything we do here. i do enjoy hearing from you. you can also look up some of our reporters as well. david is on there.

john dawson as well. washington lincoln north korea -- linking north korea to the sony attack, next.

>> fellow. hello. we are coming to you live from hong kong. it -- i amod salon salamat.salorishaad andcorruption cases over sun hung kai shares arising. obama says the sony hack was not an act of war. chasing the next prada, samsonite -- why overseas listings are such a trickle in hong kong. singapore,live in mumbai and in hong kong. we are monitoring the situation.

it is flat but -- take it away. betweens fluctuating negative and positive territory but the markets reacting to that surge on wall street. three days of rallies due to the fed saying they will be patient on raising rates. gain fording for an 8% this year. the bank of japan monthly income report is due out later today so we will keep an eye on that. percent, the south korean finance ministry did cut its growth forecast next aar down to 3.8% but still growth. australia is rising -- energy shares rising because the oil price fluctuations with the huge

rally in oil prices in more than two years. we are watching stocks here in japan. the online shopping sites are raising 3.3%. it was just raised to buy. rising 4/10 of a percent although it expects a special loss of ¥14 billion this fiscal year because of restructuring. sony with the cyber security hacking scandal, but we have heard they may release the controversial movie and they are raising .14%. >> thank you for that. sony is under pressure from hollywood. indeed, the white house spoke about the canceling of the movie due to the hack attacks.

it is really attracting the ire of washington blaming north korea. >> a lot of backlash. it is prompting sony to look into may be some more options on how to release the film. they are looking into streaming or video-on-demand after four of the chains decided to pull out on the release on christmas day. the company needs a redistricting -- redistribution partner. hase, amazon, youtube declined to comment so far. sony hasn't not given in. the ceo says there is no regrets in making the movie. comedy it was a funny and it served its purpose as political satire which the movie is about assassinating kim jong-un. despite canceling the christmas release, they're looking at possible options. sony does own its own streaming

video service called crackle. >> that is on the playstation? >> on the playstation network. no word if they would use that option. we talked about the\we talked about the backlas.h. he reached out to white house officials about the potential threats of the movie but take a look at what else he had to say. >> i don't think it was an act of war. i think was an act of cyber vandalism that was very expensive. we take it very seriously. we will respond proportionally. >> cyber vandalism, not an act of war. the u.s. is now considering whether to put north korea back

on its terrorism list when it was removed back in 2008. >> these alleged links to north korea would mean they have a a team. >> they developed this team of 3000 hackers called one-to-one. it is very cost-effective to grab the best of the country. these are just kids graduating from school. it is much more cost effective to recruit to these people and really build offensive weapons. they don't have the resources to build that type of weaponry like the u.s. or south korea. whatever you want, the dictator gets. >> they denied anything to do with this attack on sony. if they get revenge on them, it will lead to damage thousands of times greater with targets including the white

house and the pentagon. >> they want a joint investigation to clear their name, as they said. >> i'm sure that will happen. thank you very much. the chinese smartphone maker is being valued at more than $45 billion after a new investment rally. the company raised more than $1 billion in funding. the low cost business model is the top spot in china's market in the third quarter. it is number three globally behind samsung and apple now. bankss easing rules on happens next month. it'll make transactions in yen. it could boost competition giving overseas access to a market that was sealed off until recent years. leader has urged macau to diversify and not rely simply on gambling which has been getting 80% from casinos. the anticorruption drive cuts

the number of vip gamblers. the president was speaking in macau and the 15th anniversary of his return to china. >> we have to remain a country of two systems. maintain the sovereignty of our nation and keep hong kong and macau prosperous and stable long-term. we must rule hong kong and macau accordingly to law and guarantee the success of one country, two systems by the law. >> let's have a look at the shares. they resumed trading with a rally as the corruption case focusing on the controlling family is winding to a close. we have been following this story. brothers. about the one is guilty and the other is not. they were on trial -- raymond and thomas. raymond was not found guilty and thomas was found guilty of one count.

this is very close ties with businesses. the brothers were cochairmen of sun hung kai properties. thomas kwok step down after being found guilty. he was found guilty on conspiring with public office. that resulted in a series of payments resulting in $1.1 million given to rafael hui. he was given this money partly to remain favorably to sun hung kai properties while rothwell hui was theael chief investor. he held a position between 2005 and two dozen seven. h -- 2007. hui was found guilty of bribery conspiracy. -- thomasymond kwok kwok currently in custody. bad kwow.ok ,

k. >> thomas kwok will face sensing along with rafael hui. the director and managing director. sun hung kai is hong kong's biggest property company by sales. >> it is the biggest company in the world?? >> yes. >> what about the company itself? how are they dealing with this case? down,ce thomas kwok step positions have become available. d is still one of the chairman at this point. the other position he vacated was the executive director. that position has gone to thomas's son adam. this family empire was founded by the kwok brothers' father

is remaining in family hands. the company's shares have rallied today perhaps due to investors -- >> it is higher at the moment at about 2.6%. case is largely about the being over. of thec says regardless people involved, the commission impartially discharge its duties in accordance with the law. the menany in 2012 when were arrested, the shares fell 13% after. they seem to have a good recovery so doesn't seem to be overly affected by this case. >> thank you. coming up, japan's refiners could see a shakeup. we are looking at that and much

more, up next. ♪

>> this is on the move coming live from hong kong. we will have a look at what has been going on with some of these japanese refiners and show you why we are looking at them. refiner's third biggest in talks with japan's fifth biggest. they have announced they are in talks with a possible tie up after the report that they were expected to bit as much as $4 billion which is a 30% premium

from last week's closing value. l raising as shel much as 29% at one point which we be the most gain since 1974. after these discussions were revealed, other refiners also rising. because of this in japan, we are seeing this shrinking population, the popularity of fuel-efficient cars and that is making the industry leading to look to some consolidation and force turbulence and the oil markets as well leading to japan making those decisions. the oil prices are fluctuating after the biggest increase in more than two years. 1%.s now trading they have been up more than 4% since thursday. back to you. >> thankin you. dominic is the head of commodities for asian management.

talk a little bit about crude. we have seen the bottom? >> no. i think the reality is we are talking about 1.6 billion barrels -- million barrels. >> you don't even know if it is applied like that. of u.s.u look in terms the city in terms of supply, does not change much in the elasticity in terms of supply, it is not change much in the short-term. we have not gotten the clear message yet. ago, what isour happening now is the world needs to get back to the natural order of production. saying you cannot expect a low-cost country like saudi arabia to cut reduction -- production.

$100 t we need is the barrel is not in the market anymore. what we're looking at right now is somewhere between $70 and $80. do not forget, we have declining rates of 3% or 4%. if you don't invest, production will come up. in the long run, we get the recovery but we would not see much of this year. next year, there is more to come. sayse united arab emirates the non-opec countries have been you responsible. responsible. >> it was interesting what the position opec took. it was not a rational one. they are on a mission to try to

figure out where the cost is. let's have a look. i don't think that will change in a very short run. >> russia, too. that was the other consequence. the ruble taking a hit. recovery 25% in the last three trading days. >> if you look at the volatility even if you, target something like 64, you probably have arranged -- a rang e close to 80. a lot of volatility has increased the rates. i would be cautious. a lot of people are trying to find safety. >> is it a currency crisis? would you label it that? >> absolutely for russia. it is.

>> i am not going to editorialize. >> if you look at it rationally, trades have come up. what else is a currency crisis? from that angle, we are in a serious position. i think that needs to be taken into consideration. >> let's talk about gold. that is a bit of a rally. >> i think it has been quite stable. the of that really benefited. thatat about the notion the russian bank has the third biggest gold reserve in the world? you could then see a move in that? >> there have to be other assets than he to be sold first. the foreign reserve a share in gold is still there. from that angle, i am not

worried. i am more worried as the economy does quite well into 2015, especially the u.s., you will see rates going up. there is not much priced into gold.ue test of >> what is your target for gold next year? pretty much where we are now? it is about 150 now. >> we think there will be another outflow. they will try to absorb all about gold. it comes with a lower price. look for lower levels but we need to get clarity from the feds. the statement we got -- giving everything to everyone they want. in six months, things will change. >> you never know, the data may change in the other direction. we willonths from now,

have the same conversation. the rate will be closing in on some historical highs. would you not like to change the normalized policies? view of six months ahead, i think we should get some signal from the fed that will normalize interest rates. that will still be the negative drive of the gold. >> we've seen the commodities have a rough time in 2014. do we see a comeback? iron fell off a cliff. support is not much actually even in 2015. a huge imbalance of supply with low demand. things look bleak. you could argue that things will stabilize. china will still be there. they will do celebrate -- a decelerate.

in general commodity next year, i would not have a negative return overall. is it worth the risk? in the current environment, i would say it is not worth it. >> have a great christmas, dominic. up next, more gunfire on america's streets. three police officers gunned down in a weekend of violence. ♪

>> it may be the holiday week in the u.s. yang to have a look at what is ahead. >> of this bite the slowdown that comes with the christmas the listwe have quite of economic data that could move markets one way or the other. so far, signs point up. prediction show u.s. existing home sales of 5.2 million holding near october 13 month high -- 13 month high. new data should show u.s. new home sales change in november. forecasting 460,000. also tuesday, u.s. personal spending likely climbed 5/10 of a percent in november thanks to rising employment, lower gasoline prices and that all

important startup holiday shopping season. we will also get new durable goods order data, a rebound is expected as well. otherwise slow earnings week, the walgreen company will report first-quarter 2015 profits on tuesday. estimateexcellent 8 -- earnings of three cent improvement in the same. las period last year. walgreens reported one of its best fiscal year sales figures last quarter. margin pressures remain a concern. to this, shareholders consider upping the current 45% ownership alliance boots to a full one. a walgreens agreed to buy the remaining 55% of boots it does not already own for $15.3 billion back in august. that vote happens next week. onfor the rest of this week, wednesday the 24th, the new york stock exchange will close at 1

p.m. u.s. bond markets at 2 p.m. and remain closed through christmas day . back in business on friday the 26th. we will have more for you right here on bloomberg television. >> new york is marked the deaths of two policemen amidst the news that another officer was shot in florida. the killer posted in threat that the deaths would be in retaliation for the killing of black men by white officers. floridaer was shot in responding to the alarm call. the man has been arrested. several people have been arrested in connection to a school massacre in pakistan last week. television militants stormed the establishment on tuesday. they killed 148 children and teachers, the bulk being children. the interior ministry said a number of people have been

detained for aiding the attack although no details have been released. the television set a targeted the school in retaliation for the army's crackdown on militants along the afghan border. let's tell you what we have coming up right after this break. we are having a look at hong kong's ipo market. the initial public offerings have the best run for many years. behind that headline, we look at really a less flattering story. that is coming up next. we return in about 2.5 minutes from now. ♪

a third straight day. -- india is ae single tax market. in the spotlight, 2014 has made asia plus richest people. what do we have at the moment? japan is closing out for an hour as they go to lunch. here shery ahn. >> we are seeing a sea of green here in asia.

the market shaping up like this. today -- we have seen the index go up more than 800 points last week. gaining theprices most in two years. energy shares leading the gains. south korea saying they will expect about 3.8% next year. shanghai is also up. president was in andu over the weekend, casino operators were expecting some encouraging words but they didn't get it. what cap casino stocks are performing. galaxy is down 1%. we have seen casino stocks been hit by that anticorruption drive with the chinese government,

scaring away high rollers. at this, which has started trading, resumed trading after its cochairman was convicted in a corruption file. they have nott been hit -- it is staying in positive territory. his younger brother was cleared of all charges. haitong is an fundraising mode, expected to sell shares. back to you. let's have a look at those securities -- on the way up.

shares are down. 1%, up 1860 last week. -- 18.60 last week. we are looking at $3.9 billion. this is over to buddha is -- two days. 1.9 billion shares looking to to a lot of the money -- really extend some of these businesses. 40% -- i think this is part of the story. the stock prices high and they offer discounts. we are out 40% and a lot of these brokerages --

>> these brokerages are doing well. date -- another brokerage is also on a flyer this year, making it more valuable, market cap wise. back, as six weeks recently as early september, when you had -- it was worth about $22 billion. >> amazing. and over five years -- >> resounding return. it is all relative. you have a volume chart, as well. >> this is what you wanted to look at. could be challenging ubs. >> by christmas.

i think we have the graphic that shows you how it compares. stanley --hs, morgan our solar system. civic iswhich is 87 -- in fourth place. jpmorgan is not here because -- >> it is more of a bank than a brokerage. >> more than half the revenue it gets are from retail banking. said, civic also has a bank. au combine that with brokerage and you were looking at $100 billion. >> you have not looked at the revenue. -- cystic is a percent -- is 8%. buyout is all about

improving crop that end with the latest numbers they have reported -- 11 times -- >> and when you have revenues, what does that do to your valuation? >> look at what is serving it up. volume, butot more also, this is something that agulars -- that regulators, lot of those gains have been driven up by margins. outstanding margin debt in onea, as of late last week, billion. that is not huge by any means. you compare to see what there areas doing, not cheap and -- they are not cheap anymore. >> thank you very much.

a lot is going on in the corporate world. let's find out more. energizing some m&a activity in japan -- one is surging. the company may be taken over by a rival. they issued a statement saying it is in talks. the final installment in "the hobbit" trilogy was number one at the box office in north america, raking in more than $56 million in ticket sales. it beat the new "night at the museum" installment in the ie," broughtnn forward after it was released online by hackers. they don't believe sales were hit. xiaomi has been valued at over $1 billion.

xiaomi propelled it to the top spot in china's smartphone market. those of the latest corporate headlines. >> hong kong is wrapping up its best year since 2010, but there is one cloud on the horizon. overseas companies have dried up. that is not what you might call the best-known company -- we haven't had any of the big ones. >> you can't take it with you, and that is certainly the case of this company. asia, alled nirvana malaysia funeral service. curious that it was the only foreign company to list in hong kong this year.

it really points to the fact listingg kong's environment has really dampened in recent years. da, majore pra commodity producers, they are not looking at hong kong as the entry point to china, they are looking to other markets where they get a much better return entire valuations. increasingly kong is growing closer to china. that is concern there, hong kong may lose out. a lot of issues here. fallenue of ipos has every year since 2011. >> where are they going? >> they are going to new york, the new york stock exchange -- alibaba did that. not change the rules for its ownership structure.

>> having this rather strict guidelines in place? >> the securities and futures commission had a role in that as well. led thisman international push over the past 10 years. he seems to believe that the exchange will do a little bit more to bring in foreign companies. in recent years, they used hong kong after entry point to the chinese market. connect, ifanghai at all? >> the shanghai connect program -- it seems to be the next step in hong kong costs growing -- hong kong's growing closeness with china. that will continue to drive the hong kong exchange closer to the chinese market. shanghai has been designated as the financial center in china

and the authorities there are working hard to bring it up to international standards so foreign investors can play a greater role in the market. those in the markets here will tell you that it will still be quite some time before shanghai achieves that. >> thank you. tara down and start again. it is typically what we see in this part of the world, especially in hong kong. but there is another way. >> there's nothing on the market here that is comparable. it's very big, very well finished interiors. >> take a stroll along this waterfront and you will notice one building that sticks out from the rest. >> it has been a labor of love and i am happy to see it come together. >> the labor, you can tell from

these before pictures, was a 1962 low rise in need of a bit of work. most hong kong developers would have torn it down and started again. victoria allen loved its potential. >> i have seen so many developments go up in hong kong, four bedrooms with tiny rooms, and i just wanted to do something that was totally different. >> so she did the unthinkable -- restore the building, expand the space, like in new york city loft. >> this is an original feature of the building with its curved corner. we wanted to keep that. >> she even kept the original name of the building. but the conversion came with its share of hurdles, first getting the approval from the buildings department, then getting a bank to give her a loan, which ultimately failed.

allen was able to complete the program thanks to private investors. >> i realized i couldn't get any financing, no bank would give me financing stop at that time. >> finally, to install an elevator. now links to the private rooftop. >> this is the rooftop, the penthouse apartment. it has got a fantastic view. >> one unit per floor, about 1300 square feet. rent ranges from $16,000-$14,000. keeping a bit of hong kong's heritage may be what makes it home and unique. >> doing the conversion and not and notng clearwire -- realizing who you are. >> asia's billionaires have the

largest net worth. ♪

>> asia has outperformed the world in terms of the rising debt. our billionaires reporter joins us. a good year for the lucky few. indeed, it has been a good year, especially for china's richest. china's 10 richest billionaires 2014,ained $50 billion in surpassing the top 200 richest to have only gained a relatively smaller $40 billion. richest, has $29 billion and gained $26 billion

this year. that is of course due to the ipo of alibaba. their shares have risen over 60% this year, giving it a market capitalization of $270 billion. there is another chinese billionaire who has seen his wealth rise by 60% to about $25 billion. it has been a good year for chinese billionaires. >> anything catcher i hear in particular? going along with this chinese chinese anticorruption drive has been going on for two years and it hasn't seen any sign of letting up, and that is really hurting a lot of casino stocks. it has wiped out some $75 billion in makkah capitalization -- in market capitalization. they started the year in the world's top five richest and he is now followed all the way down to 80th. that is because his wealth is

34%.$6.3 billion, ok, but i don't believe he is the biggest loser. >> you are right. the biggest loser in asia actually comes from japan. interesting. he is a large investor and ali baba. you would expect it should have done well. but it also had this failed pursuit -- because of that, investors are wondering, where it goes from here. it has hurt the stock. son has lost $6.6 billion this year. >> for more on the world's wealthiest, had to bloomberg.com/billionaires.

it has been a tough year for luxury watches in this part of the world. the president of the watch division is saying that it is the start of the new era for luxury timepieces. about theith him future of luxury watches and the rising digital challenge. ♪ let's talk about hong kong. is renowned that throughout the world for its love of luxury watches. >> yes, not only luxury watches, luxury in general. >> 21 is to know? -- what to do you want us to know? >> it is not so open, it is traditional. i would say it is traditional garde.ant

> is this part of a history that is about to go away? our watches evolving? -- are watches ar evolving? are you going to adapt, create your own smart watch? . we are working on it. we are in silicon valley. we are talking to the best people. we will most probably come out with a smart watch for that area. >> how will asia factor in this new drive? -- asiank asian will will be the market where people understand, where young people want this type. >> jean-claude, thank you so much. ♪ >> up next, not everyone takes the next step toward making

india friendly. updates after this. ♪

>> this is "on the move." let's have a look at what we are tracking for you. is monday, december 22, and these are the top stories. president obama described the sony hack as vandalism and not an act of war. they have blamed pyongyang for the attack and the u.s. is considering putting north korea back on its list of state-sponsored terrorism's. north korea denies any involvement and has proposed a joint investigation. some relief for investors -- a high-profile case has come to an end and the shares are rallying. the jury found the cofounder lt of bribing a government official.

opec is blaming nonmembers for the drop in oil and is pushing for them to cut production. manager --nergy energy minister says they should stop there "irresponsible increase." they have tumbled over 40% this year as production in the u.s. climbed toward the highest in decades. those are the top stories. india is bracing for a major administrative shakeup. the prime minister wanted to spur growth by allowing tax breaks. we are joined from mumbai. there could -- we could be one step closer. the government is introducing the goods and services tax. what will it mean and how will

it work? it means that they will be able to charge taxes and say how to legislate, and the council will be set up which will be headed the finance minister, and all the finance ministers. more states have opposed it as they feared a revenue loss. revenue -- the government has said it will safeguard it for a. of up to five years -- for a period of up to five years. also there is the option to let the in additional 1% tax for a. of up to two years. the government was supposed to introduce this bill but the upper house of parliament has dropped it in protest. the business has taken place so far in parliament. it concludes tomorrow and the government is signaling to push

through this amendment bill. back to you. >> thanks. down to theing you opening in mumbai. let's have a look at futures. it is nearing what's happening in the broader asian-pacific. here is the close we saw on friday. because the building on that even further. looking at hong kong and shanghai, and both of these markets -- they are adding to the steady rally we have seen. 1.8% up. japan and south korea and tokyo are unchanged, on lunch break at the moment. that's it for this monday of "on the move." "asia edge" coming up next.

jeff is from j.p. morgan asset management and we will get his his crystal ball for the year ahead. ♪

>> that is a look at victoria harbour in the heart of hong kong. this is asia edge. shanghai at the highest levels we've seen since 2010. sun hung kai's case comes to the end. the sony hack was vandalism, not war. >> also coming up, while

pyongyang denies any involvement in the attacks, critics say it shows north korea's growing threat. plus, this 1960's building is making headlines in hong kong by defying the wrecking ball. we meet a developer with deciding the unfashionable ideas. 2014 has been a good year for some. we will go through the billionaires list on this monday addition -- edition of asia edge. >> asian stocks are rising today for a third day as crude futures rebound. rising 1.5% led by energy and mining shares. after the finance ministry released a report on economic policy direction for next year. the shanghai composite rising